Make IT Matter

Forrester's Best Practice Report, Make IT Matter For Business Innovation, quotes 2002 survey results of business and IT decision-makers to conclude that "IT organizations have lost their way." While it was recognized that IT is vital to business innovation, only 22% of respondents saw IT as a source of innovation. The usual suspects were dragged out to explain why there is a such a dim view of IT:
  • IT is a constraint and lacks flexibility
  • IT doesn't meet business expectations
  • Support burden continues to increase
  • IT wastes energy on prototyping toys with no clear business value.

IT used to be innovative, and can still change. There is significant, untapped value in IT staff that are under-utilized and not called on to be innovative. IT also has to retake its place at the business table, and remind their organizations that they're more than just an expense. Forrester lists key IT assets that are untapped for business innovation as:

IT-enabled business innovation is given the following definition by Forrester:
Transforming a business process, market offering, or business model to boost value and impact for the enterprise, customers, or partners.
That definition is further refined by the following qualifying criteria:

So how will IT get its groove back? Forrester has a hand 12-step, self-help program for business innovation recovery of IT organizations. After years of cutting, Forrester suggests that IT needs to rebuild its innovation talent, visibility and momentum.

How your organization tackles the 12-steps depends on the state of IT, whether its drunkenly falling out of control or sobering to reality, and what type of IT organization it aspires to be. The 12-steps can't be tackled all at once, so there isn't going to be overnight recovery -- and therefore, it is most important for the intestinal fortitude to be there sustaining recovery.

With the short term thinking that organizations excel in, a 12-step recovery program that requires upfront investment and long term planning sounds like it will fail before it starts. That's what the outsourcing vendors and consulting firms count on of course -- organizations inability to do basic long term planning and investing. But, organizations can succeed on the 12-step program if they go for targeted investment, deliver results in the short term and slowly build on their successes.

An older Forrester report that I recently read also sparked similar thoughts. Consumer-Focused Innovation, summarized how forward thinking businesses are leveraging consumers in their innovation processes, to redesign process, develop new products and explore new channels. As I read the report, I couldn't help but draw parallels to the predicament of insourced IT shops that are struggling to "avoid the commodity death spiral." It's a good read in that context.

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